The particular perils that your Vermont business’ commercial package policy provides protection from will be outlined in the policy’s terms, conditions and exclusions. Because policies have their own language, the perils they cover can vary. In general, however, policies can be categorized into four groups based on the perils they cover. Your business’ policy likely falls into one of these groups. (The following information contains generalities towards CPP's and you need to refer to your specific policy to find your exact coverages. Your insurance agent can help walk you through your policy if you need clarification).
What Perils Does a Commercial Package Policy Protect My Vermont Business From?
Basic Commercial Package Policies: Essential Protections
Basic commercial package policies are the most stripped-down of all four groups. They normally only provide the most essential of protections, often covering perils like:
Fire, smoke and explosions
Lightning, windstorms and hail
Aircraft and vehicles (damage caused by these)
Riots and civil commotion
Volcanic action and sinkhole collapse
Fire sprinkler leaks
Obviously, some of these coverages are more important to business owners in the state than others. The risk of a business being vandalized or suffering wind damage, for instance, is likely greater than its risk of being destroyed in a volcanic explosion.
While you might not think your business needs every protection in a basic commercial package policy, some of the protections are extremely important. Therefore, it’s likely wise to carry at least a basic CPP for your business.
Broad Commercial Package Policies: Expanded Protections
Broad commercial package policies build on the protections provided by basic commercial package policies. Most insurers include all of the protections their basic commercial package policies offer in their broad ones. Onto these protections, a broad CPP may add coverage for some of the following perils:
Damage from the weight of snow, sleet and ice
All of these coverages can help better protect a business, but it’s the last one that’s especially attractive to many business owners in the state. With snowfalls throughout the state frequent, having protection for snow and ice -- including the damage caused by their weight -- is particularly important.
Special Commercial Package Policies: Many Protections
Special commercial package policies are typically set up differently than basic or broad policies. Instead of listing the perils they cover (as basic and broad policies usually do), special commercial package policies normally only list the perils they don’t cover. Anything that’s not explicitly mentioned as an exclusion is usually covered.
In most cases, the protections offered by special commercial package policies exceed those provided by broad policies. This may be the right type of CPP for your business if you want the most robust protection available.
Earthquake Commercial Package Coverage: Specialized Protection
Even special commercial package policies often exclude earthquakes from their coverage. For this reason, many insurers offer a specialized earthquake coverage. This coverage may be offered as an independent policy that’s purchased separately or as an optional coverage that’s added onto a CPP.
Many business owners in the state don’t think to get earthquake coverage. The state has had a few earthquakes with magnitudes of 4 or greater, though. Therefore, you may want this coverage for your business. Because such earthquakes are fairly uncommon, earthquake coverage in the state is often quite affordable.
Have a Vermont Agent Check Your Business’ Commercial Package Policy
To find out if your Vermont business’ commercial package policy provides the coverages your business needs, contact an independent insurance agent in Vermont. An independent agent will be to review your current policy and help you understand which of these categories it fits into. They can also help you determine whether these coverages are sufficient. If your business needs more coverages, an independent agent can help you find a new CPP.
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